Brokers Optimistic Despite Recent Market Challenges

This article was originally published on PR Newswire.

BOISE, Idaho, Feb. 9, 2023 /PRNewswire/ — The Bloomberg | Truckstop semi-annual freight broker survey shows brokers are less pessimistic than anticipated given the challenges the industry faces from declining volume and rate pressures.

“Freight brokers appear unfazed by the collapse in spot truckload rates and the effects of moderating economic activity on demand, contractual rates and gross margins,” said Lee Klaskow, senior freight transportation and logistics analyst at Bloomberg Intelligence. “Only 12% of respondents expect gross margins to contract over the next six months.”

The Bloomberg | Truckstop Truckload 2H-22 survey shows sentiment is surprisingly upbeat:

Broker demand sentiment surprisingly upbeat: About 41% of respondents said volume rose in 2H compared with a year earlier, about 6 percentage points lower than in our 1H22 survey. Though more respondents reported growth, the magnitude of declines were greater.
Brokers remain relatively optimistic about demand growth: About 49% of those surveyed expect demand growth over the next six months vs. 45% in 1H22 and 76% in 2H21.
Brokers are split about where rates are headed, even as pessimism grows: Spot rates excluding fuel surcharges have fallen 24% over the past 12 months after peaking at the end of 2021. About 34% expect rates to decrease in the next six months, while 28% see them rising.
Brokers are less enthusiastic about the ability to raise contract rates with shippers over the next six months: About 22% of brokers polled expect to boost rates — 14 percentage points below our survey in 1H22 and 34 percentage points behind our 2H21 report.

“The majority of brokers surveyed reported growth from the previous year,” said Kendra Tucker, chief executive officer, Truckstop. “This tells us that the technology and solutions we provide brokers continue to be an integral part of helping them grow their business in all market conditions.”

The Bloomberg | Truckstop survey of freight brokers provides timely channel checks into the market’s health. The most recent sample size was 112, consisting of freight forwarders, third-party logistics providers and broker agents, as well as asset and non-asset-based brokers. Most respondents (74%) have 1-50 employees. Of those surveyed, non-asset-based brokers made up the biggest group (40%).

The complete survey is available to Bloomberg Terminal subscribers via BI.

About Truckstop

Truckstop is a trusted partner for carriers, brokers, and shippers, empowering the freight community through a platform of innovative solutions for the entire freight lifecycle to increase efficiency, automate processes, and accelerate growth. As one of the industry’s largest neutral freight marketplaces, Truckstop provides the customer service as well as scale of quality loads and trucks to give customers of all sizes, whether on the road or in the office, the transparency and freedom to build lasting relationships and grow their businesses. To learn how Truckstop is helping move the freight community forward, visit https://truckstop.com.